Volume Delta: Difference between revisions
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→Understanding Volume Delta Chart Type
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==Understanding Volume Delta Chart Type== | ==Understanding Volume Delta Chart Type== | ||
<img src="https://www.multicharts.com/trading-software/images/b/b2/VDChart1.png?20240729122741" width="400"> | |||
Volume Delta (also called Footprint Chart) provides price and volume activity together on one data point over a specified time frame. It allows traders to see "within" the price bar to provide more transparency over a traditional chart. | |||
A bar is divided to equal parts based on minimum price increments for the symbol. Each box shows ask and bid volume in one of the three ways: ask x bid values, ask and bid sum or their delta. | A bar is divided to equal parts based on minimum price increments for the symbol. Each box shows ask and bid volume in one of the three ways: ask x bid values, ask and bid sum or their delta. | ||
There are 2 base colors: red and green. A box is green if delta of ask and bid volume is positive. A box is red if delta of ask and bid is negative. All boxes within 1 bar are not the same in terms of color. The darker a red box is, the lower is its delta value. The darker a green box is, the higher is its delta value. All boxes between these extremes are colored respectively. | There are 2 base colors: red and green. A box is green if delta of ask and bid volume is positive. A box is red if delta of ask and bid is negative. All boxes within 1 bar are not the same in terms of color. The darker a red box is, the lower is its delta value. The darker a green box is, the higher is its delta value. All boxes between these extremes are colored respectively. |